Tuesday, April 20, 2010

GM Paying Back The Government

Two weeks ago GM announced they lost 4.3 BILLION
http://www.manufacturing.net/News-General-Motors-Loses-4-3-Billion-040710.aspx

Today GM is announcing they are paying back 4.7 Billion in debt they owe the government.
http://www.google.com/hostednews/ap/article/ALeqM5hij2hVGuCY0y8eoe3MwKGnw7WW_QD9F6E3500

1) Where did the money come from since their results are still so poor.

2) What is the rush to pay the government back?

Here is the answer. http://www.autoblog.com/2010/03/23/feds-cut-executive-pay-at-general-motors-chrysler/

Once the government said if you take bailout money executive compensation must be curtailed these companies will do anything to give back the money. Closing plants is fine. Laying people off is fine. Closing dealerships is fine. Borrowing from another source is fine. The only thing not fine is telling top executives they can't have endless money to reward their failing results. The second that got put on the table all the bailout money was returned as fast as possible. It is better to have a failing company and endless compensation then it is to take less money and have a successful company.

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